Monday, January 9, 2012

Online only offers for REO properties - it's happening!

7 years ago when we created our online real estate auction system, I
expected a much larger adoption by the asset managers at the banks to
use the auction process to sell their REO (Real Estate Owned) properties
(i.e. foreclosures).

Today, several asset managers do use
auction companies such as REDC, Hudson & Marshall, Williams &
Williams, etc to move some of their inventory. However, the majority of
the REO inventory is still being sold through the MLS.

Well, last week, I got really excited because I came across some REO agents in my market that are making a change.

A
few REO agents have made it mandatory that offers for their listings be
submitted online. Not only that, but in the 3 examples I saw, each
agent had a different system. One of the systems told the amount of the
highest offer, while the others just showed the number of offers.

So,
it's finally happening. A growing number of asset managers/REO
agents are adopting technology to make it easier to handle offers on
their properties.

Unfortunately, there is still a BIG piece
missing. There is no sense of urgency, no deadline for submission
(timed auction), it's just wide open. The bank will take offers until
they get one they like (I guess).

I'm grateful that they are
starting to take offers online, and I just hope it won't be too much
longer before they realize the benefits of doing it in a timed/auction
format to create the urgency and get the best price for the banks.

About Tom Wood

I'm a real estate broker & online real estate auction expert in St. Louis, MO. I'm also the co-founder of Real Estate Auction Systems which is an online real estate auction system & service which we sell to real estate agents and auctioneers.
We have an Enterprise version of our auction system for auctioneers, Realtors and anyone else who wants their own private branded online real estate auction system. For more details on our Enterprise version visit our info and demo site